Balgarianovinite.com Automotive Cluster Bulgaria (ACB) said on Wednesday that key parameters in the 2026 draft budget could slow investment in the country’s automotive sector. The association warned that rising labour and social security costs, a higher dividend tax, and new transport regulations could slow down industrial growth and even force factory and R&D centre closures, while the draft budget again offers no real incentives for innovation.
ACB said the measures run counter to the EU’s Clean Industrial Deal, which urges Member States to ease regulatory and cost burdens and support key sectors, including automotive manufacturing.
The cluster warned that doubling the dividend tax to 10% would bring little fiscal benefit but could deter investment and encourage profit shifting through shell companies or hidden distributions through sham services and non-market prices.
ACB warned that late-year fiscal and regulatory changes undermine investor confidence and risk driving industrial investment to more predictable markets. The organization noted that faster public-sector wage growth, a budget deficit and higher taxes are fuelling inflation and worsening the business climate.
Automotive Cluster Bulgaria urged starting talks with businesses by spring 2026 to create a stable, predictable and investment-friendly policy framework by year’s end.
The automotive industry currently provides direct employment for about 1% of Bulgaria’s workforce, with an indirect economic impact several times greater. Over the past 15 years, the sector’s steady expansion has contributed to the economic transformation of regions such as Plovdiv and Vratsa. In recent years, the automotive industry has accounted for between 10% and 11% of Bulgaria’s GDP, the statement said. Automotive Cluster Warns 2026 Budget May Slow Investment 2025 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2025-11-12 16:35:04 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law
